The Calf Value Discovery Program (CVD) allows cow-calf producers to gain knowledge of the finishing segment of the beef cattle industry and the marketing of fed cattle. Specifically, CVD provides an opportunity for cow-calf producers to learn how their calves perform in a feedlot and their carcass value when sold in a value-based marketing system. Each producer taking part in the program could consign a minimum of 5 steers weighing between 500 and 800 pounds to the CVD program. Animals were finished in a calf-fed program using typical diets and management protocols at VanderWal Yards (Bruce, SD). Carcass and feedlot performance information from calves were returned to producers for use in making future management decisions to improve profitability

Holland, B.P.

Rusche, W.C.

Walker, J.A.

Wright, C.L.

English

Public Research Access Institutional Repository and Information Exchange

South Dakota State UniversityOpen PRAIRIE: Open Public Research Access InstitutionalRepository and Information ExchangeSouth Dakota Beef Report, 2012 Animal Science Field Day Proceedings andResearch Reports2012SDSU Calf Value Discovery 2011 SummaryReportJ.A. WalkerSouth Dakota State UniversityB.P. HollandSouth Dakota State UniversityC.L. WrightSouth Dakota State UniversityW.C. RuscheSouth Dakota School of Mines and TechnologyFollow this and additional works at: http://openprairie.sdstate.edu/sd_beefreport_2012Part of the Animal Sciences CommonsThis Report is brought to you for free and open access by the Animal Science Field Day Proceedings and Research Reports at Open PRAIRIE: OpenPublic Research Access Institutional Repository and Information Exchange. It has been accepted for inclusion in South Dakota Beef Report, 2012 byan authorized administrator of Open PRAIRIE: Open Public Research Access Institutional Repository and Information Exchange. For moreinformation, please contact michael.biondo@sdstate.edu.Recommended CitationWalker, J.A.; Holland, B.P.; Wright, C.L.; and Rusche, W.C., "SDSU Calf Value Discovery 2011 Summary Report" (2012). SouthDakota Beef Report, 2012. Paper 8.http://openprairie.sdstate.edu/sd_beefreport_2012/841  BEEF REPORT 2012-08  SDSU Calf Value Discovery 2011 Summary Report1  J. A. Walker, B. P. Holland, C. L. Wright and W. C. Rusche     Department of Animal Science, South Dakota State University  INTRODUCTION  The Calf Value Discovery Program (CVD) allows cow-calf producers to gain knowledge of the finishing segment of the beef cattle industry and the marketing of fed cattle. Specifically, CVD provides an opportunity for cow-calf producers to learn how their calves perform in a feedlot and their carcass value when sold in a value-based marketing system. Each producer taking part in the program could consign a minimum of 5 steers weighing between 500 and 800 pounds to the CVD program. Animals were finished in a calf-fed program using typical diets and management protocols at VanderWal Yards (Bruce, SD). Carcass and feedlot performance information from calves were returned to producers for use in making future management decisions to improve profitability.  MATERIALS AND METHODS  Eleven cow-calf operations in South Dakota and Minnesota consigned calves to the 2011-2012 CVD program. The number of animals consigned by producers ranged from 5 to 72. Calves were received on November 8th and 9th, 2011.  Upon receipt, calves were vaccinated against viral and bacterial respiratory (Bovi-Shield Gold BVD, Inforce 3, One-Shot, Pfizer Animal Health, Kalamazoo, MI) and clostridial pathogens (Ultrabac-7, Pfizer), dewormed (Dectomax Pour-On, Pfizer), individually identified, and weighed. Calves were implanted on d 35 (Synovex S, Pfizer) and on d 105 (Revalor-S, Merck Animal Health, Summit, NJ). Cattle were fed a finishing diet based on high moisture ground ear corn, modified wet distillers grains, and corn silage as a group in a single pen. Cattle were visually evaluated for degree of finish and sold in semi-load lots when deemed to have approximately 0.4 inches of backfat.  Slaughter dates were May 11, June 1 and 15, 2012 (184, 205, and 219 days on feed, respectively). Animals were sold on a quality/yield grid at Tyson Fresh Meats, (Dakota City, NE).  For each animal, individual BW was recorded at arrival at the feedyard, on d 35, d 105, and one day before shipment to slaughter. A four percent shrink was used for all weights. Since cattle were fed in a single pen, individual feed intake was calculated based on animal performance and diet energy content using NRC (2000) equations. At slaughter, individual identification was tracked through the plant and individual carcass data, including HCW, 12th-rib fat thickness, ribeye area, percent kidney, pelvic, and heart fat, marbling score, and USDA Quality and Yield Grades, were reported by the plant. Actual expenses included feed, based on calculated individual intake as a fraction of actual feed delivery, yardage ($0.35 per animal daily), and veterinary expenses.  Feeding expenses associated with calves that died during the program was distributed equally across all other                                                         1 Salaries and research support provided by state and federal funds appropriated to South Dakota State University. 42  animals in the program. Actual grid prices were used to calculate carcass value and feeding period profitability. To estimate feeder calf price, and overall profitability, average feeder steer prices from South Dakota Auction Market Summary report (USDA Agricultural Market Service report SF_LS795) for the weeks ending October 31, and November 7 and 14, 2012 were regressed on selling weights.  The resulting equation was used to calculate feeder calf price for each calf: Price ($/100 lb) = 277.65 - (BW × 0.1147) (r2 = 0.81). The Nebraska weighted average carcass price for negotiated direct sales was used (USDA Agricultural Market Service report LM_CT158) for the weeks animals were sold was used to estimate carcass value and profitability had animals been sold on a dressed basis.  To estimate what factors were associated with feeding performance or profit and quality grade for calves that finished the 2011-2012 CVD program, calves were divided into thirds based on profit. A generalized linear model was used to separate means between groups (PROC GLM, SAS Institute, Cary, NC).  The association of USDA Quality Grade among profit groups was determined by χ2 (Proc Freq, SAS). Means were considered different when P ≤ 0.05.  RESULTS AND DISCUSSION  Four calves (1.63%) died during the program, and the remaining 240 animals finished the program and were included in the analysis. Overall cattle performance data is included in Table 1.  Calves were placed with an average weight of 569 ± 87 lb, but the range in weights was 459 lb.  Some calves were accepted into the program whose initial weights were outside the recommended range of 500 to 800 pounds. Average final BW for steers (average DOF = 201) was 1,245 ± 110.1 lb, and ADG was 3.37 lb/d. Dry matter intake of was 20.2 lb/d, which was 2.2% of average BW, and F:G ratio was 6.01 on average. The 2011-2012 winter was extremely mild in eastern South Dakota, with little precipitation. This likely contributed to the good performance.  On average, steers were slaughtered at target fat thickness, but considerable variability existed among steers.  Steers graded well, with 67.1% Grading US Choice or Prime, with only 9 Yield Grade 4 carcasses and 2 Yield Grade 5 carcasses. In a pen-based scenario, approximately 10% of carcasses should have Yield Grades of 4 and 5 for maximal profit (Walter and Hale, 2011). In this case, had some animals been fed longer, overall quality grade might have been improved.  On average, feeding costs were $565.31 per animal. This equates to a total cost of gain of $83.62/100 lb. When carcasses were sold on a grid marketing basis, price ranged from $1,173.37 to 1,954.15, but had carcasses been sold on a dressed basis this range would have been narrower ($1,184.49 to $1,863.22). When including the value of the feeder calf, there was a $633.86 dollar per animal range in return from a loss of $220.95 to a profit of $412.91.  However, on average total profit was $48.20 per animal. Since 1973, feeding cattle has been approximately a breakeven business (Walter and Hale, 2011). For the whole group, carcasses sold for $11.42 per carcass more on a grid basis, than on a dressed basis. This resulted in approximately the same profit advantage to selling on a grid for the whole group. However, on an individual basis, there was less potential profit for the highest profit animals when they were sold on a dressed basis. Generally, animals that had the best potential to match the grid should have been sold on a grid, but there would have been less price risk for animals that did not conform to the grid by selling on a dressed basis. When sorted according to profit groups, the High profit steers had heavier placement and final weights, and had a greater ADG compared to the Low and Middle profit groups. Typically, higher profit in cattle feedlots is associated with superior feed efficiency, but because DMI was 43  calculated from NRC (2000) models, DMI and subsequently F:G may be overestimated for some high gaining animals. Because of this higher DMI, High profit steers had greater feed costs than Low, with Middle intermediate.  However, superior performance and carcass value overcame this expense.  In addition, while High profit steers were placed on feed weighing 154 pounds more than the Low profit steers, they were on feed 9 fewer days, which helped reduce yardage and feed costs. On average, costs associated with treating illness were significantly greater for Low profit groups than Middle and High.  Steers in the High profit group had greater HCW, dressing percentage, and ribeye area than Low profit steers, with Middle profit steers intermediate. Similarly, High Profit steers had greater marbling scores, and lower kidney pelvic and heart fat, and tended to have lower yield grades than Low profit steers, with Middle profit steers intermediate. Twelfth-rib fat thickness, however, was not different among profit groups, indicating that the previously mentioned differences in carcass characteristics were not influenced by degree of finish.  Superior HCW and quality grade resulted in carcass values of $1,714.08 for High profit steers compared to $1,551.27 and $1,376.34 for Middle and Low, respectively. However, because of the higher feed costs for High and Middle compared to Low the difference in feeding period profit was not as great as the difference in carcass value (High minus Low profit = $300.10). In addition, High and Middle steers had greater placement weights, and thus greater feeder calf values compared to Low. Therefore, the difference in total profits between High and Low was only $149.18 per animal. Had steers been sold on a dressed basis, the carcass value and profit to Middle steers would have been similar to when animals were sold on a grid. For Low profit steers, selling on a dressed basis would have an advantage of $8.36 in carcass value compared to selling on a grid, but High profit steers were valued $40.05 more per carcass on the grid than on a dressed basis.    For individual producers, the Calf Value Discover program provides feedback on feeding performance and carcass characteristics of calves. In addition, viewing animals from an individual ranch in the context of the entire group can provide a benchmark for comparison with cattle from other operations. In general, cattle with greater potential to perform and producer heavier carcasses were more profitable than those with lower weight gains. Higher profit steers also had superior USDA Quality Grades and tended to have better Yield Grades. Ultimately, market conditions and input prices can greatly impact feeding profitability from year to year, but these data provide useful guidelines for making selection and marketing decisions in the future.  LITERATURE CITED  NRC.   2000.  Nutrient requirements of beef cattle.  7th Ed.  Update 2000.  National Academy   Press. Washington, D.C.  Walter, S., and R. Hale.  2011.  Profit profiles: factors driving cattle feeding profitability.   Available: http://www.cabpartners.com/news/research/CABProfitProfiles.pdf.  Accessed  September 10, 2012.       Table 1.  Overall performance and carcass characteristics of cattle enrolled in the 2011-2012 South Dakota Calf-Value Discovery Program. Item Mean Standard Deviation Minimum Maximum Days on Feed 201 14.2 184 219 BW, lb          D 0 569 87.0 340 799      D 105 934 107.5 641 1,273      Final 1,245 110.1 979 1,549 ADG, lb/d 3.37 0.412 2.17 4.97 DMI, lb/d 20.2 1.84 15.9 26.8 F:G 6.01 0.40 5.01 8.17 HCW, lb 795 75.2 615 966 Dress., % 63.8 1.76 58.1 68.1 12-th rib fat thickness, in. 0.46 0.14 0.11 1.30 Rib eye area, in.2 13.0 1.7 9.8 18.9 KPH, % 1.91 0.19 1.41 2.52 Marbling Scorea 421.6 77.6 285.0 770.0 Yield Grade 2.50 0.75 1.0 5.0      Quality Grade Distribution N Percent        Prime, % 2 0.8        Choice, % 159 66.3        Select, % 76 31.7        No roll, % 3 1.3   a Marbling score: 300-399 = Slight, 400 – 499 = Small, 500 -599 = Modest.   44    Table 2.  Feeding expenses and carcass values of cattle enrolled in the 2011-2012 South Dakota Calf-Value Discovery Program. Item Mean Standard Deviation Minimum Maximum Feeder calf cost, $/steer 914.91 84.92 641.18 188.67 Feeding costs, $/steer          Feed cost 444.36 36.78 331.79 543.60      Treatment costs 7.08 17.12 0.00 101.03      Total Feeding cost 565.31 42.51 438.20 702.43 Grid marketing profit          Carcass value, $/carcass 1,547.23 156.97 1,173.37 1,954.15      Carcass price, $/100 lb 192.23 5.98 173.14 223.13      Live price, $/100 lb 122.57 5.54 102.58 148.73      Feeding profit, $/steer 963.11 135.80 636.13 1,349.09      Total profit, $/steer 48.20 86.37 - 220.95 412.91 Dressed marketing profit          Carcass value, $/carcass 1,535.81 144.31 1,184.49 1,863.22      Feeding profita, $/steer 951.70 122.61 647.76 1,265.19      Total profit, $/steer 36.79 68.12 - 219.20 211.38 aFeeding profit is carcass value minus feeding cost.   45    Table 3.  Feedlot performance and carcass characteristics of steers enrolled in the 2011-2012 South Dakota Calf-Value Discovery Program according to profit group.  Profit Group   Item Low Middle High SEM P-Value n 80 80 80 - - Days on Feed 206a 201b 197b  0.003 BW, lb           D 0 487a 578b 641c 6.69 <0.001      D 105 834a 941b 1,028c 7.94 <0.001      Final 1,136 1,255b 1,343c 7.87 <0.001 ADG, lb/d 3.17a 3.38b 3.57c 0.042 <0.001 DMI, lb/dd 18.6a 20.3b 21.6c 0.154 <0.001 F:G 5.94a 6.01ab 6.09b 0.044 0.054 HCW, lb 716a 801b 868c 4.76 <0.001 Dress., % 63.0a 63.8b 64.6c 0.183 <0.001 12-th rib fat thickness, in. 0.45 0.48 0.47 0.016 0.41 Rib eye area, in.2 12.0a 13.0b 14.1c 0.162 <0.001 KPH, % 2.01a 1.89b 1.82c 0.020 <0.001 Marbling Scoree 402a 414a 449b 8.42 <0.001 Yield Grade 2.60 2.56 2.35 0.083 0.07 a,b,c Means differ; P-values noted in table.  dCalculated from BW and ADG e Marbling score: 300-399 = Slight, 400 – 499 = Small, 500 -599 = Modest.   46    Table 4.  Quality and Yield Grade Distributions of steers enrolled in the 2011-2012 South Dakota Calf-Value Discovery Program according to profit group.  Profit Group   Low Middle High  Quality Grade n Percent n Percent n Percent P-Value     Prime 0 0 1 0.1 1 0.1 0.02     Choice 44 55.0 48 60.0 67 83.8      Select 24 30.0 30 38.5 12 1.5      No Roll 2 0.3 1 0.1 0 0          Yield Grade             1 5 6.3 9 11.3 8 10.0 0.24      2 29 36.3 23 28.8 36 45.0       3 40 50.0 42 52.5 36 45.0       4 5 6.3 4 5.0 0 0       5 1 1.3 1 1.3 0 0     47    Table 5.  Feedlot performance and carcass characteristics of steers enrolled in the 2011-2012 South Dakota Calf-Value Discovery Program according to profit group.  Profit Group   Item Low Middle High SEM P-Value Feeder calf cost,  $/steer 831.98a 929.83b 982.91b 6.44 <0.001 Feeding costs, $/steer           Feed costs 420.16a 445.47b 467.67c 3.51 <0.001      Treatment costs 12.44b 6.27a 3.55a 2.25 0.01      Total costs 546.52a 565.07b 584.35c 4.45 <0.001 Grid marketing profit           Carcass value, $/carcass 1,376.34a 1,551.27b 1,714.08c 8.36 <0.001      Carcass price, $/100 lb 189.68a 191.55b 195.45c 0.614 <0.001      Live price, $/100 lb 119.10a 122.24b 126.36c 0.524 <0.001      Feeding profitd, $/steer 810.89a 967.45b 1,110.99c 6.51 <0.001      Total profit, $/steer -  21.09a 37.62b 128.09c 6.82 <0.001 Dressed marketing profit           Carcass value, $/carcass 1,384.70a 1,548.71b 1,674.03c 9.21 <0.001      Feeding profita, $/steer 819.25a 964.90b 1,070.94c 7.40 <0.001      Total profit, $/steer -12.73a 35.07b 88.03c 6.09 <0.001 a,b,c Means differ; P-Values noted in table. d Feeding profit is carcass value minus feeding cost.   48 

SDSU Calf Value Discovery 2011 Summary Report

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SDSU Calf Value Discovery 2011 Summary Report

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